Menu
Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Herzberg's management theory provides the tools to both satisfy and motivate employees.
With a large portion of the working population leaving their jobs to pursue other opportunities — what has become known as the “Great Resignation” — businesses have reexamined their founding principles and company cultures to institute widespread changes to retain top talent.
Businesses that have adapted to boost morale and keep their employees engaged have fared well during the Great Resignation. This is a key tenet of Frederick Herzberg’s management theory. Here’s everything you need to know about Herzberg’s management theory and tips for incorporating it into your company.
Herzberg contributed greatly to the human relations school of management through his insight into employee satisfaction and motivation. Herzberg’s motivation-hygiene theory, also known as the two-factor theory, covers what he called the “hygiene factor” and the “motivation factor.” According to this theory, hygiene factors are the extrinsic conditions, or environmental factors, that determine employees’ level of satisfaction.
Herzberg’s theory states that, while negative hygiene factors (such as low pay, poor working conditions and a lack of job security) cause job dissatisfaction, positive hygiene factors (such as status, good ergonomics and worker-friendly policies) simply satisfy basic employee needs while exerting no effect on motivation.
Motivational factors, by contrast, are the positive influences that cause an employee to want to do a better job. According to Herzberg’s theory, motivational factors can be either extrinsic or intrinsic. Extrinsic motivating factors include recognition, advancement and increasing levels of responsibility, whereas intrinsic motivating factors include achievement, growth and interest.
To motivate employees, Herzberg suggested arranging work for job enlargement, job rotation and/or job enrichment. To boost productivity, he said, employers must increase their employees’ motivational factors while increasing workplace hygiene.
If you’re looking to implement aspects of Herzberg’s management theory, here are some tips to get started:
There are numerous resources — including books, podcasts and tutorials — that provide valuable information about Herzberg’s theory. You’ll find videos, instructional materials, diagrams and summaries of Herzberg’s motivation principles that can help you develop the background knowledge to put these theories to work for your company.
Consultants with knowledge and experience in Herzberg’s management theory can guide you in maximizing the benefit of his principles in your company’s unique environment. [Read about the The Management Theory of Henry Mintzberg.]
If hiring a consultant to help tackle this work isn’t in your budget right now, you can begin evaluating your company’s current status to get a sense of your workforce’s overall job satisfaction and dissatisfaction.
Herzberg took inspiration from Abraham Maslow’s theory of self-actualization, more commonly known as Maslow’s hierarchy of needs, and applied some of those principles to the workplace.
Maslow’s hierarchy of needs states that for humans to achieve self-actualization, or the motivation to become the best possible version of themselves, their most basic needs must be met first. With Herzberg’s theory, the same idea applies to evaluating your company culture to determine how well your current policies meet your employees’ motivation and hygiene needs.
Herzberg’s hygiene factors equate to what Maslow considered the most basic needs. Once your company meets those requirements, your workforce should feel stable and supported enough to be motivated to perform their roles as well as possible. Here are some hygiene factors to consider:
To see how well your company meets your employees’ hygiene and motivation needs, poll your workforce. Then, meet with your senior leadership and HR teams to review the results, determine the next steps and coordinate efforts to implement change.
Once you have employee feedback, it can be difficult to discern where to go next. Here are some strategies for addressing your employees’ concerns:
According to Herzberg, allowing employees more responsibility and independence in their roles imparts a sense of fulfillment and achievement, thereby motivating them to take pride in their work and strive to improve and grow. In addition, when your employees are encouraged to take ownership of their projects, you reinforce that they are appreciated members of the company and that you value their insight and expertise.